Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Jan 26, 2022 9:43:16 AM

Gift tax

I file married jointly. What is the limit I can gift my mother without paying taxes? And do I understand correctly the tax if any would be mine ( giver) not hers ( receiver) ?

thank you! 

0 2 660
2 Replies
Level 15
Jan 26, 2022 9:44:14 AM

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.  Money that you gave as a gift to someone else is not deductible for your taxes.

 

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

 

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

 

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-11-2-million-per-couple/#3226e75d4a4b

Expert Alumni
Jan 26, 2022 9:58:13 AM

The IRS allows anyone to make gifts of up to $15,000 to another person. For 2022, the annual exclusion goes up to $16,000.

 

That means you and your spouse can give your mother up to $32,000 in 2022 ($16,000 each).

 

If you give more, you would have to file a gift tax return, but would not have to pay any tax.

 

Excess gifts reduce your lifetime exclusion, which is the amount of money you can transfer upon death before having to pay estate or gift tax. Most people don't come anywhere near the exclusion amount so it's generally not a concern. It's just time consuming and expensive to file a gift tax return.

 

Check out awesome champ @xmasbaby0's post on gift taxes with lots of helpful links and Frequently Asked Questions on Gift Taxes.